I've pretty much stated that a new cycle of rate cuts has begun, and that rate cuts don't necessarily stop a raging waterfall if it should choose to manifest itself. Nice to see posters are finally betting alongside the probabilities. I can recall when probabilities were 100% chance of rate cut, and posters were adamant about flat to rate hike calls. Even Cleveland has an unusually high confidence level of a rate cut at 25 basis pts (70%). At this point, I think ben has been pretty obvious about which side he will cater to. That being said, I'll publicly state I'm with the 4.5% camp. And if by some anomaly, they should decide to stay flat (or heaven forbid, hike) , I will go short faster than you can blink -- not happening. My 2C.
I am all for raising rates .75, we all know the real inflation, but the poll is what will the fed do? Cut .25 like the fed fund futures is predicting. It's a given by most accounts, look at the up moves today on both the Loonie and the Euro. I know the Loonie is do to Gold and Oil, but it's also pricing in a weaker dollar.
What about leaving them alone and just cutting the discount window? They don't want to use up their gun powder if equities take a dump. They can bail them out again on the next 5-10% "correction" I say leave them alone. Let the market tank. Let the US $$ go up a little.